AT&T (T) Stock Advancing as Price Target Raised at Barclays
NEW YORK (TheStreet) -- AT&T's (T) - Get Report stock is up by 0.63% to $43.04 in early-morning trading on Friday, as the company's price target was raised to $45 from $42 at Barclays. The firm maintained an "overweight" rating on the stock.
The price increase comes as the U.S. Telecom Services industry "has outperformed both the market and other subsectors, returning 21% compared to 4.6% for the S&P 500," Barclays said in an analyst note.
"Within our coverage, T and VZ are clear outperformers relative to the sector and peers (+24% and +21%)," the firm added.
Valuation concerns do limit upside for AT&T, as the company is trading near a 10-year high, the firm wrote. But Barclays expects AT&T to start working on potential earnings revisions, which makes it "a relative preferred play."
AT&T is a Dallas-based telecommunications company.
(AT&T is a holding in TheStreet's Dividend Stock Advisor portfolio. Learn more here.)
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate AT&T INC as a Buy with a ratings score of A+. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: T
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